Hi, I'll try and keep this verybrief, but if anyone has any advice on my scenario it would be muchappreciated.
I purchased a property with my then girlfriend in October 2007 for £87,000. Thefinance borrowed was 102% split up £82,650 (repayment mortgage) and £6,350(unsecured loan) with Coventry Building Society. The mortgage was a 50/50 jointmortgage.
We split up in February 2010 due to a change of heart on my behalf, since then,we have both gone our separate ways and the property has been rented out. I now have another mortgage with my newgirlfriend and I understand my ex is also living with her new partner and isexpecting a baby in July. The flat isstill being rented out and holds a decent rental value.
Since February 2010, we have bothbeen paying £25 per month equally to cover the costs of renting out theproperty (rent covers the mortgage but not insurances and factors bill etc) sowe have both invested an equal amount into the property to date and things havebeen relatively amicable. We have alsoboth cleared the unsecured loan 50/50 by taking out individual finance.
We have had the property valuedand the current valuation came in at £60,000. So we are approx. £20,000 in negative equity. My ex has stated that she is happy to sellthe property and would be prepared to deal with such a loss. I am not so keen to take on a £10,000 lossand would be more interested in continuing to rent this property until we areback to positive equity and then try to sell or I would also be keen totransfer the title deeds into my name if she would be prepared to pay me hershare of the negative equity.
I received an email from my exthis week to advise me that she no longer has an interest in the property and iscutting all ties to the property. She will make no further payments towards thecosts of future bills. Clearly this isan uneducated statement as she cant cut all ties with the property but in my opinionshe is expecting me to assume responsibility and pay her share of the paymentsto avoid defaulting on the mortgage. Althoughthis amount is only £25 I want to avoid paying any of her share as she willnever pay another penny again if I do.
I have made enquiries about a transfer of equity with Coventry and they haveconfirmed that I would qualify financially to afford the mortgage on abuy-to-let basis.
I would like some advice beforeapproaching my ex with an offer to transfer the deeds into my name. Would I be within my rights to ask her to payme her share of the negative equity based on the current valuation? i.e. Shewould pay me 50% of the negative equity (£10,000) and I would then become thesole owner? My concern is that if she didntpay anything then I would be taking responsibility for £20,000 of negative equityand she would walk away without paying a penny.
Many thanks in advance for your help and advice.
I purchased a property with my then girlfriend in October 2007 for £87,000. Thefinance borrowed was 102% split up £82,650 (repayment mortgage) and £6,350(unsecured loan) with Coventry Building Society. The mortgage was a 50/50 jointmortgage.
We split up in February 2010 due to a change of heart on my behalf, since then,we have both gone our separate ways and the property has been rented out. I now have another mortgage with my newgirlfriend and I understand my ex is also living with her new partner and isexpecting a baby in July. The flat isstill being rented out and holds a decent rental value.
Since February 2010, we have bothbeen paying £25 per month equally to cover the costs of renting out theproperty (rent covers the mortgage but not insurances and factors bill etc) sowe have both invested an equal amount into the property to date and things havebeen relatively amicable. We have alsoboth cleared the unsecured loan 50/50 by taking out individual finance.
We have had the property valuedand the current valuation came in at £60,000. So we are approx. £20,000 in negative equity. My ex has stated that she is happy to sellthe property and would be prepared to deal with such a loss. I am not so keen to take on a £10,000 lossand would be more interested in continuing to rent this property until we areback to positive equity and then try to sell or I would also be keen totransfer the title deeds into my name if she would be prepared to pay me hershare of the negative equity.
I received an email from my exthis week to advise me that she no longer has an interest in the property and iscutting all ties to the property. She will make no further payments towards thecosts of future bills. Clearly this isan uneducated statement as she cant cut all ties with the property but in my opinionshe is expecting me to assume responsibility and pay her share of the paymentsto avoid defaulting on the mortgage. Althoughthis amount is only £25 I want to avoid paying any of her share as she willnever pay another penny again if I do.
I have made enquiries about a transfer of equity with Coventry and they haveconfirmed that I would qualify financially to afford the mortgage on abuy-to-let basis.
I would like some advice beforeapproaching my ex with an offer to transfer the deeds into my name. Would I be within my rights to ask her to payme her share of the negative equity based on the current valuation? i.e. Shewould pay me 50% of the negative equity (£10,000) and I would then become thesole owner? My concern is that if she didntpay anything then I would be taking responsibility for £20,000 of negative equityand she would walk away without paying a penny.
Many thanks in advance for your help and advice.